In Europe, cars and other vehicles with diesel engines are very common. They tend to get better fuel economy and diesel is at times cheaper than gasoline. With more and more drivers in the U.S. focused on green cars and fuel economy, America may finally be ready to embrace the diesel engine.

There are several car companies now looking to place diesel engines into cars and SUVs that traditionally used gasoline only. BMW is a good example; the company is readying a version of its M5 that uses a diesel engine. GM is also onboard with a diesel version of its popular Chevrolet Cruze compact sedan.

Now Mazda has announced plans to bring its Skyactiv-D diesel engine to the U.S. car market by 2014. Mazda thinks that the engine will help it stand out among the hybrids. The Skyactiv-D engine is a 2.2L four cylinder with 173hp and 310lb/ft of torque.

"We think it's a good differentiator," said Jim O'Sullivan, CEO of Mazda North American Operations, to Automotive News during the Detroit auto show. It will give Mazda a reputation that "Those guys are always doing something a little different."

The diesel engine is expected to find its way into the CX-5 crossover SUV and the Mazda6 sedan. The Mazda6 sedan is only expected to get diesel power in some markets and it's not clear if the U.S. is one of those markets. Mazda is eyeing VW in the States since VW is the only carmaker at the price point with a diesel option courtesy of the Passat TDI.

"Volkswagen, I honestly believe, gets incremental business above and beyond other brands because they do have a diesel, and they buy Volkswagens only because they do have it," said O'Sullivan.

It's balanced based -taxes- and other government imposed factors. Markets balance based on consumer demand and supplier cost... not what's the most efficient use of fuel.

For example, in Germany, Diesel is taxed ~0.20 Euros less per liter than gasoline. That's nearly 1 dollar a gallon!

In most US states, Diesel only gets an additional 5 cents per gallon extra tax.

But if you compare Germany and the US, there is more than a 1 dollar per gallon difference in government imposed cost... which creates an artificially increased demand for Diesel in Germany... provided the transportation cost for a gallon a Diesel Fuel is less than 50 cents per gallon, then its better to ship the Diesel Fuel to Europe than consume it here in the US! (While Diesel Engine makes better use of fuel on a per kWh basis than gasoline, its probably better to use local gasoline than foreign diesel.)

I think the whole world needs to review their taxing of energy. A worldwide policy of taxing energy sources in a consistent way would help ensure that the market picks more -efficient- energy rather having the government pick winners. I would suggest formula based in part on kWh, NOx, Particular matter etc.

(I like Diesel, but I am not so naive to think that the huge numbers of Diesel passenger cars in Europe is not due to the massive tax advantage given to them by the European governments.

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